Car insurance in balance sheet

The accounting treatment of car insurance and product liability insurance will show up on your income statement rather than your balance sheet. Insurance expense will be one of the categories that your income statement lists as an expenditure.

Prepaid Insurance and the Asset Account Prepaid insurance is considered a business asset, and is listed as an asset account on the left side of the balance sheet. The payment of the insurance expense is similar to money in the bank, and the money will be withdrawn from the account as the insurance is "used up" each month or each accounting period.

Prepaid Insurance and the Asset Account. Prepaid insurance is considered a business asset, and is listed as an asset account on the left side of the balance sheet. The payment of the insurance expense is similar to money in the bank, and the money will be withdrawn from the account as the insurance is "used up" each month or each accounting period.